Kvě 14

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

Source: bitcoin

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

There is a trend emerging in the bitcoin trading landscape. The trend is towards higher and higher leveraged products. If you do not have leverage or zero trade fees at your exchange, then you can expect to see tumbleweed go by every day. Give the users leverage or zero fees, otherwise expect exchange death.

Disclaimer: Bitcoinist does not endorse nor back any of the services in the article. Use them and the information at your own risk.

Also Read: Talking with CRIX founder Dmitry Koval

Stigma – Socialised Losses and high leverage

There is a chance of Socialized losses when trading at some futures platforms with high leverage. When there are a lot of liquidated positions, the system can be at a loss. To prevent the system from losing money everybody that made a profit after the futures have settled pays a part of their profit into the pot to pay for the liquidations. In the past, there were significant socialized losses at okcoin and bitvc. In more recent times since adjusting some of the parameters around liquidations and increasing the insurance fund size socialized losses occur a lot less. Socialized losses were something that a lot of exchanges did not want to be associated with. High leverage futures were thought to be unsafe and not a real derivative. These two factors made some platforms hesitate to make the move to high leverage products.

Crypto Facilities

At the start of 2015 Crypto Facilities offered 3:1 which they later rasied to 5:1. Now have a turbo product with 50:1 leverage. That is quite an increase in leverage wouldn’t you say? At Inside Bitcoins Berlin,Dr. Timo Schlaefer the CEO characterised anything over 3:1 to be “unsafe” and a “gambling product. Oh, how the times change. Compared to a lot of other platforms that offer 20-100:1 leverage. One thing that is different about the products at Crypto Facilities is that there are not any socialised losses. The futures are settled without a possible clawback if there are too many people on the losing side. Even at 100x leverage CF does not have socialised losses. They are also regulated by the FRN. Recently they have made a partnership with CME to create a bitcoin reference rate and real-time index.


Bitmex started out as a futures platform designed for institutional traders. It was confusing and overly complicated for a lot of traders and struggled to get volume. Little by little the UI improved, products were taken away and new ones were added. With the new products and higher leverage came new traders. The latest product is a 100:1 perpetual swap that allows people to trade bitcoin at 100:1 without having to deal with futures settlement. The only one of its kind on the market. Bitmex has also added a perpetual swap at 33.1:1 and has the “regular” futures for bitcoin, litecoin, factom and the A50. Unlike an altcoin exchange, everything at bitmex is based on bitcoin all futures and swaps are denominated in bitcoin. This allows you to get exposure to different markets using bitcoin.

liquidations incoming

Zero Fees
Known for ghash it’s mining pool CEX has been a quiet place in regards to trading as of late. It turns out they have been doing a significant amount of business with people buying bitcoin via credit card and have reportedly had40 Million in deposits and are adding margin trading. They have lowered the fees on all trading pairs and are offering no fees for trading on the pairs ETH/BTC and LTC/BTC. Without fees day trading and trading with a trade bot more viable since you are only paying the spread. Even without fees any exchange will have a tough time getting anywhere near the volume at okcoin.cn. There are no trade fees and the volume is off the chart. Not only is okcoin.cn without fees but they also offer 3:1 leveage. Is the volume at zero fee exchanges real or simple wash trades to pump up the volume? You will have to decide for yourself.

Do you trade bitcoin with leverage? What is your favourite platform?


image credit: tradingview.com ,World History Archive/Newscom, wetalktrade.com

The post Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading appeared first on Bitcoinist.net.

Give Me Leverage or Give Me Zero Fees for Bitcoin and Cryptocurrency Trading

Úno 16

BitMEX Adds China A50 Bitcoin Futures To Its Offerings

Source: bitcoin

Bitocinist_Futures Contract

Bitcoin traders have been reaping the benefits of arbitrage opportunities for many years now. In fact, there is a growing need for arbitrageurs and market makers, as they are the main providers of liquidity in any financial context. BitMEX, a platform specialized in trading Bitcoin derivatives, has integrated Bitcoin futures contracts with China stocks. This is a major step forward for the legitimacy of Bitcoin as a viable trading tool, both for investing and speculation across other markets.

Also read: Bitcoin Liquidity: Why Are we so Stingy?

China A50 Bitcoin Futures On BitMEX

It goes without saying that Bitcoin and traditional financial trading platforms could prove to be a very potent mix. The popular digital currency providers arbitrage opportunities to anyone in the world with an Internet connection. Traditional finance, on the other hands, is a vastly different creature, as not everyone can start trading futures on the China A50.

But that is no longer an issue, thanks to BitMEX and the Singapore Exchange. Especially this latter party deserves a bit of praise, as they launched a futures contract in USD on the FTSE China A50 Index a few years ago. If this foundation had not been available, BitMEX would not have been able to provide this type of functionality to its users today.

Investors have been jumping at the bit for an opportunity to go long or short on the Chinese market, and Singapore Exchange has provided them with exactly that opportunity. Particularly in these days of market volatility, there is plenty of liquidity to be found where these futures contracts are concerned.

BitMEX decided to jump on this opportunity and put Bitcoin in the mix of China A50 futures contract trading. By copying the contract terms of the same product offered by the Singapore Exchange, BitMEX opened the doors for traders with access to the SGX platform to diversify their trading strategies with Bitcoin. It hardly comes as a surprise to learn many Bitcoin users have been waiting for a hybrid futures contract option such as this one.

One thing to take into account is how the BitMEX China A50 futures contract will be open for trading 24/7. However, market makers will only be able to use the SGX futures price as BitMEX price during trading hours, which range from 00:45 AM to 6:00 PM in the GMT timezone. A detailed table of trading hours can be found here.

But There Is More!

As most market makers will be well aware of, the China A50 futures market is not accessible 24/7. During the “ceased trading” periods on SGX, BitMEX users will be able to choose from other China ETFs to trade with. However, there will be a certain period every day where no product is being traded using the China A50 as an underlying. If all goes to plan, this gap will be filled in the coming years, assuming BitMEX futures contracts become the new leading market indicator by then.

Last but not least, BitMEX has come up with a plan to incentivize traders to provide liquidity on this new futures contract. Passive and makers orders will both be subject to a trading rebate, and makers will earn a 0.10% “commission” on the Bitcoin value of their orders on each individual fill.

What are your thoughts on BitMEX offering futures contracts linked to the China A50? Let us know in the comments below!

Source: BitMEX

Images courtesy of Shutterstock, BitMEX

The post BitMEX Adds China A50 Bitcoin Futures To Its Offerings appeared first on Bitcoinist.net.

BitMEX Adds China A50 Bitcoin Futures To Its Offerings